Nexteer Automotive Plans Hong Kong IPO

Nexteer Automotive Corp. plans to start taking orders from institutional investors on Friday for its initial public offering in Hong Kong, a person with direct knowledge of the matter said on Monday.

The IPO could raise around US$400 million.

The Michigan-based maker of steering and driveline systems is currently gauging investor interest, the person said.

Nexteer was owned by General Motors Co. until 2010 when it sold it to Pacific Century Motors, an investment arm of the Beijing municipal government. AVIC Automobile Industry Holding Co., a subsidiary of state-owned aerospace company Aviation Industry Corp. of China bought a 51% stake in 2011.